This post goes back to mid 2012. A conversation yesterday with a colleague brought it to mind, as we were discussing the the opportunities to monetise Intellectual Capital of the sort represented by the 1200 odd StrategyAudit posts. “You know more about category management that almost anyone”, he said, “You almost invented what was then Trade Marketing 30 years ago, there must be a bob here somewhere”.
Perhaps self indulgently, I agree.
Data mining as it is evolving in retail is a fascinating exercise in identifying behavior characteristics that apply to very small percentages of the shopper population, and doing something with them. Progressively retailers are getting better at leveraging the data, and as the penetration of cards increases past a critical mass, so will the effectiveness of the marketing and promotional programs. Of course, consumers are well aware of this, and have well developed “relevance meters” built in.
Consider the category management of potatoes. Pretty dull stuff? no, fascinating stuff. I am making these numbers up to illustrate the point, but consider, of 100 customers using their cards at the checkout, perhaps 10% have potatoes in their trolleys, and 10% of that 10% have a particular variety, and of that 10% (now down to 0.1%), they also have sour cream and chives in their trolley. Pretty reasonable guess that the potatoes…
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